Reviewing Bank Statements for Non Payroll Deposits-This bears repeating!

By
Mortgage and Lending with Bank of Oregon a division of Willamette Valley Bank

Reviewing Bank Statements for Non Payroll Deposits

Back in the day, it wasn't uncommon for an underwriter to ask for an explanation as to an out of the ordinary, large deposit, into a borrower's bank account.  The underwriter would ask for this explanation to determine there were not non seasoned funds in an account that perhaps were borrowed monies.

Well, flash forward to the new world of mortgage lending and underwriting standards.  Boy have things changed.  Many investors are now requiring an explanation and paper-trail on any deposit that is non payroll related. While just the other day I had to have some clients explain and paper-trail a non payroll deposit of $1002.80.  Fortunately, they were able to access their online account and pull up the details of that transaction.  $1000.00 was actually a refund of an Earnest Money Deposit on a transaction that didn't go through in addition there was a $1.86 check for a refund from their previous gas company as well as a refund check of .94 cents which was a refund from their previous electric company. 

While it may be difficult for our clients to live in "our new mortgage world" preparing them and educating them during the process will ultimately lead to a cleaner and less frustrating transaction. 

I encourage Realtors and lenders alike, that at the beginning of the home buying and lending process to please set these expectations for your clients.  I promise you, in the end, there will be one less headache to deal with.

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Rainer
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Trang Beuschlein
Homes for Sale in Campbell CA- Broker-BKR Realty - Campbell, CA
Campbell CA Real Estate - Campbell CA Homes for Sa

Karen, thanks for the heads up.  I'll make sure to advise my buyers.

Jul 26, 2011 11:17 AM #1
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Hi Trang!  You are most welcome and I appreciate you taking the time to read and comment.  I would just encourage your buyers to be very mindful of their banking activity and papertrail...papertrail....papertrail!  All the best to you! 

Jul 26, 2011 11:21 AM #2
Rainer
98,356
Karen Poss
Coldwell Banker Pinnacle Properties, Florence Alabama - Florence, AL
Realtor - 256-366-6292 - Search Florence Al Homes For Sale

Hi Karen, you are so right about this.  Over the past few months I have been supplementing my real estate income by working part time as a loan processor for a friend of mine.  And oh my!...what an education I have gotten.  As a Realtor I never realized what all is involved in the loan process.  These days I don't know whether I should blog about the buying and selling process or the loan process...both can be pretty complex.

Jul 26, 2011 11:23 AM #3
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Hi Karen!  Ya know what, I really commend you for braving the world of loan processing.  (I used to process myself actually before becoming a loan officer).  I really appreciate the fact that the Realtor side of you now has a great understanding on what the lending side needs to accomplish as well!  And I think you should blog about BOTH!  You would really bring a lot of insight to your Realtor partners.  Wishing you much success at both endeavors!  :)

Jul 26, 2011 11:27 AM #4
Rainer
98,356
Karen Poss
Coldwell Banker Pinnacle Properties, Florence Alabama - Florence, AL
Realtor - 256-366-6292 - Search Florence Al Homes For Sale

I was just noticing your Live Traffic Feed...that is pretty very cool. 

Jul 26, 2011 11:30 AM #5
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Karen, that Feedjit widget is REALLY fun to watch.  There are times that I'll see someone viewing one of my posts, and I find it REALLY interesting when they are posts from months ago.  Must be the power of Google Juice!  :)  I say get yourself a Feedjit!  :)

Jul 26, 2011 11:34 AM #6
Rainer
118,941
EC, JF, Double R and Zoey the Cool Cat
Russel Ray Photos - San Diego, CA

I don't remember if I had any explaining to do when I bought my condo ten years ago. I think I was probably a boring buyer.

Jul 26, 2011 03:36 PM #7
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Or you can document, document, document, and when you're done "document." Homeland security created a much bigger requirement for transparency. I guess it's a sign of the times. But you're so right, be prepared to explain everything, and why not do that up front?

Jul 26, 2011 04:36 PM #8
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Eric, I'm guessing you were hardly boring...charming maybe, but not boring!  Wishing you the best!  :)

Hi Debb!  It's definitely a new world we're in, huh?  I'm still amazed at the changes we face!  But you are right, better to over document, than not!  Have a great night!  

Jul 26, 2011 04:54 PM #9
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Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

Karen - thanks for letting us know this. I'll be sure to pass it along.

Jul 27, 2011 12:42 AM #10
Rainer
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Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

You are most welcome, Toni!  Glad to help.  Have yourself a terrific day!

Jul 27, 2011 06:03 AM #11
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Rainer
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Karen Burket

Valley Mortgage Grou, Conventional, FHA, VA, mortgages
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